Mar 2016 Financial News

$1.1b profit before tax for Ansa McAL

Mar 24, 2016

The ANSA McAL Group recorded a 9.2 per cent increase in profit before tax for 2015. Group chairman and CEO Norman Sabga said the profit before tax was $1.163 billion, up from $1.065 billion for the previous year.

The results, which were announced yesterday, also show that the group’s earnings per share (EPS) improved by 12 per cent to $4.45, from $3.97 in 2014 and revenues stood at $6.2 billion which is two per cent higher than the prior year mark of $6.1 billion.

Sabga said all of the group’s segments generated acceptable revenue growth levels in 2015 that exceeded 2014. Manufacturing, packaging and brewing grew by 13 per cent, while automotive, trading and distribution was up by nine per cent; media, services and parent company by eight per cent and insurance and financial services by four per cent.

The group’s directors have approved a final dividend of $1.10 per share which will be paid on June 8. This is ten per cent more than the final dividend in 2014 and took the group’s total dividend for 2015 to $1.40 per share.

Sabga said a mixture of different things accounted for ANSA McAL’s solid results at a time when the T&T economy is sluggish.

“Look at the talent we have. We have done this the ANSA McAL way. We are never happy where we are, we have a target of growing significantly by 2020,” he said.

“We were born in hard times and flourish in hard times. We believe there is a lot of opportunity ahead.”

Speaking following the official release of the group’s year-end financial results at ANSA McAL’s head office, Tatil Building, Port-of-Spain, Sabga said the conglomerate model works well when external circumstances are not doing well.

“When one sector is down, the other sectors can grow. That is the model that has worked well for us,” he said.

Sabga said the ANSA McAL Group has had difficulties accessing foreign exchange and is looking to increase exports to gain access to more of it.

“The demand for foreign exchange outstrips the supply. We must find the mechanism to bring equilibrium to the market. We are struggling for foreign exchange in insurance, trade and other areas. We want to beef up exports to generate more foreign exchange,” he said.

He said while a depreciating TT dollar will drive production up, only in certain sectors like international trade, while in manufacturing it would be much smaller.

Sabga also reported that ANSA McAL continues to do well in Barbados and other regional markets. He said Barbados loves the ANSA McAL group and T&T and the group has contributed to growing wealth in that country.

The ANSA chairman said he is confident T&T has what it takes to revive its sluggish economy.

“We are in a difficult position as a country and we have to work hard to get ourselves out of this position,” he said.

Source:
Rapheal John-Lall
Trinidad Guardian
Thursday March 24, 2016

http://www.guardian.co.tt/business/2016-03-24/11b-profit-tax-ansa-mcal